Foreclosure Information

Foreclosure Definitions and Process

The foreclosure process is set forth in Title 38, Article 38 of the Colorado Revised Statutes. Those statutes are available in most public libraries as well as online at https://leg.colorado.gov/agencies/office-legislative-legal-services/colorado-revised-statutes.

Below you will find some definitions of foreclosure terms you may see while using our Foreclosure Search or on other materials related to the foreclosure process. Our office does not provide legal advice.

1. DEED OF TRUST - In Colorado, a mortgage is generally called a Deed of Trust and that document is signed and recorded at the time the property is purchased and financed. The Deed of Trust gives the Public Trustee the right to sell the property through foreclosure proceedings if the borrower defaults on the terms of the Deed of Trust or Promissory Note (non-payment or other default).
2. LOAN TYPE - Some different types of loans are: Conventional, VA, FHA, and Unknown.
3. INTEREST RATE - The percentage rate shown may be the original interest rate on the loan and may not reflect the default interest rate. Default interest rates usually go into effect when payments on the loan are in arrears or past due.
4. CURRENT BENEFICIARY - It is a common practice for mortgage companies to "sell" loans to other lenders or pools of lenders. The current lender (or beneficiary) of a loan will frequently not be the mortgage company that made the loan when the property was initially purchased.
5. NED RECORDED - The Notice of Election & Demand for Foreclosure (NED) is the first document the Public Trustee's office receives from the lender or its attorney. This is recorded with the Clerk & Recorder's office and the foreclosure is officially started at this time.
6. SCHEDULED SALE DATE - A sale date is established somewhere between 110 and 125 days after the NED is recorded to allow time for legal notice mailings and for newspaper publications to be completed. The original sale date may be continued upon request of the lender or its attorney, or it may be continued by the Public Trustee only under legally-defined circumstances.
7. MAILINGS - By law, the Public Trustee must mail notices and information to persons/entities specified on the mailing lists provided to the Public Trustee by the lender or its attorney.  This notice sets out the time and date of the foreclosure sale. There are at least two mailings sent out to the mailing lists provided.
8. PUBLICATION - By law, the Public Trustee must publish the mailed notice in a newspaper of general circulation within Larimer County. We currently publish in the Loveland Reporter-Herald. The notice must be published at least 5 consecutive weeks.
9. CONTINUANCE - The scheduled sale date may be continued (postponed) at the request of the lender or its attorney, or it may be continued by the Public Trustee, for legally-defined reasons.
10. CURE - A cure may be made prior to the foreclosure sale only by certain people/entities who have a legal right to cure the default on the mortgage or Deed of Trust. If a property owner (or other legally-entitled person) believes they can bring the past-due payments current (plus all fees and costs of the lender, lender's attorney, and Public Trustee), they must file with the Public Trustee's office a Notice of Intent to Cure at least 15 days prior to the scheduled sale date. The Public Trustee's office then requests cure figures from the lender. Cure figures from the lender are due to the Public Trustee's office within 10 business days of the request or by the eighth (8th) calendar day before the sale. Once cure figures are received, the Public Trustee provides those to the party who filed the Intent to Cure. The cure amount given is effective through the deadline listed on the cure statement. Funds must be submitted to the Public Trustee's Office by noon (12:00 pm Mountain Time) the day before the scheduled sale date. If the scheduled sale date is continued to a later date, the deadline to file an Intent to Cure by those parties entitled to cure may also be extended.
11. WITHDRAWAL - A foreclosure may be withdrawn (stopped) for several reasons at the request of the lender or its attorney, or by the Public Trustee if the sale has been continued for too long a period of time as per statute. A withdrawal is generally processed when a cure is made so that the foreclosure does not go forward.
12. RULE 120 COURT ACTION and ORDER AUTHORIZING SALE (OAS) - When a loan is referred to an attorney for a foreclosure action, the attorney files a court action under Rule 120 of the Colorado Rules of Civil Procedure. The borrowers/owners are notified of the date and time for the court hearing and may attend that hearing. The purpose of the hearing is to provide the lender's attorney an opportunity to prove to the judge that a "reasonable probability” exists that the loan is in default. If the borrower/owner does NOT appear at the court hearing, the court will consider from the evidence presented whether or not there is a reasonable probability that a default exists and then, if so, will enter an Order Authorizing Sale to permit the foreclosure action to proceed. Before the Public Trustee's office may sell a property on the foreclosure sale date, it must have received from the lender's attorney a signed copy of the Order Authorizing Sale. Any foreclosure sale made without that Order is invalid.
13. BID AMOUNT OR AMENDED BID - An initial written bid is due from the foreclosing lender/holder by noon (12:00 pm Mountain Time) two business days prior to the scheduled foreclosure sale date. A bid usually includes the outstanding principal amount, interest due, and statutorily-allowable fees and costs from the attorney and Public Trustee. Bids submitted on time may be amended the day before the sale. If an initial written bid from the lender is not received timely for a foreclosure set to go to sale, the foreclosure sale is continued for at least one week.
14. DEFICIENCY AMOUNT - Foreclosing lenders must submit bids that they believe are a reflection of the property's value at the time of the foreclosure sale. If the lender feels the property is worth less than the amount owed on it, the "deficiency amount" reflects the difference. If the property is sold for less than the amount owed on the loan at the time of sale (plus all costs and fees), the lender may attempt to collect the deficiency amount personally against the borrower through a separate court action because the deficiency amount is NOT extinguished by the foreclosure.
15. ACTUAL SALE DATE - This is when the property is actually sold at the foreclosure auction sale. Once the sale is actually held, several deadlines begin to run.
16. THIRD PARTY BIDDER - If someone other than the foreclosing lender (usually referred to as a "third party bidder") bids more than the initial written bid submitted by the foreclosing lender, that is an overbid. The successful third party bidder must submit certified funds by 2:00 pm (Mountain Time) the day of the sale via wire, cash or certified check.
17. OVERBID AMOUNT OR EXCESS PROCEEDS - If the property goes to foreclosure auction sale and is purchased for MORE than the TOTAL OWED to the lender and to all other lien holders, the borrower at the time the foreclosure was started should contact the Public Trustee's office AFTER THE SALE occurs because they MAY have funds due to them.
18. CERTIFICATE OF PURCHASE (COP) - The Public Trustee issues this document to the successful bidder at the foreclosure sale to show that the successful bidder has an interest in the property. It is recorded with the Clerk & Recorder's office and made a public record. The interest under the Certificate of Purchase is fully assignable. 
19. JUNIOR LIENORS - There may be more than one deed of trust or other lien on a property. Anyone who holds a lien on a property is called a lienor and may have a right to redemption of the property according to law. Lienors need to have a recorded interest in the property being foreclosed prior to the NED recording date. In order to redeem the property in foreclosure, a lienor must file a Notice of Intent to Redeem within eight (8) business days of the sale. Lienors interested in exercising their legal rights on a foreclosure property are strongly advised to consult with an attorney.
20. LAST DATE TO REDEEM / REDEMPTION - This is the deadline for a redemption to be made by a junior lienor who has filed an Intent to Redeem form and been given redemption figures. A redemption requires that all funds owing to the foreclosing lender or holder of the Certificate of Purchase (COP), including attorney's fees and costs and Public Trustee's fees and costs, be paid in full. If a property is redeemed before the deadline expires, a Certificate of Redemption (COR) will be issued. Once the COR has been issued by the Public Trustee, it is assignable to someone else at the option of the holder. Ultimately, the last COR issued will obtain ownership of the property through a Public Trustee's Confirmation Deed. 
21. DEED or CONFIRMATION DEED - Once all redemption periods have expired and no redemption has been made (or a redemption has been made and a Certificate of Redemption has been issued and recorded), the Public Trustee may issue a Public Trustee's Confirmation Deed to the holder of the Certificate of Purchase or the holder of the last-issued Certificate of Redemption. The Deed is then recorded with the Clerk & Recorder's office and transfers title to the property from the previous owners (borrowers) to the new owner. A Confirmation Deed Request form should be completed by the Certificate of Purchase or Certificate of Redemption holder.
22. RESCISSION - The lender or its attorney may rescind (void) the foreclosure sale after it has taken place. In order to rescind the sale, the foreclosing lender must be the successful bidder at the foreclosure sale and the holder of the Certificate of Purchase, and a notice must be given to the Public Trustee no later than 8 business days after the date of the foreclosure sale.
23. BANKRUPTCY / RESTART - When a borrower files a Bankruptcy Petition prior to or during publication of the notice of foreclosure, the U.S. Bankruptcy Court will usually issue a stay order requiring that the foreclosure action not be continued until further notice from the court. The foreclosure sale extends week to week until the Bankruptcy Court takes action. If the Bankruptcy Court subsequently issues an order granting relief from the stay order, then the foreclosure may be restarted.